Faroe Business Report — The International Review of Faroe Islands Industry and Trade - Faroe Business Report — The International Review of Faroe Islands Industry and Trade

“We’re quite patient,” he said, alluding to the slow process of preparing the way for the huge infrastructure project.

After feasibility research and draft designs and a successful initial stage with financing secured and overwhelming popular support, the 1 billion dkk (134 million eur) project ran into hurdles at bureaucratic and political level.

Time ticked away as the original financing bank closed its Faroese branch and had the project case transferred to another bank, which went into receivership a year later, shattering hopes of reaching any concession agreement with national authorities before the expiration of a deadline.

Then finally, after the failed bank had been restructured, the process could continue in February this year (2011) with an extension of the deadline granted.

Today the mayor seems confident that the consortium of private and municipal interests behind it will ultimately succeed in having the tunnel built.

“At last, the tunnel project is back on track and we’re beginning to feel excited about it again,” Mr. Johannesen said. “This is an economically viable project and we now have the necessary permissions and the political backing to go ahead. Even if central planners should decide to nationalize it in the future, we’re talking about a fixed link that isn’t going anywhere once it’s constructed.”

“The financing will be arranged through a credit facility from international lenders,” Mr. Johannesen said. “The deadline for the signing of a concession agreement has been extended to 1st August, so there is time to get everything in place.”


Handling litter: The tunnel will interconnect the two arms of the Skálafjord with the capital Tórshavn, dramatically reducing the driving distance between the capital and most of the island of Eysturoy including Klakvsík on the island of Borðoy.

“In short, the road infrastructure for much of the main area of the islands will be vastly improved. This will eliminate something like two times one hour of commuting every day for hundreds of people who work in Tórshavn while living in Eysturoy or Klaksvík, or vice versa.”

One of the mainstays of the Faroese fishing industry, Toftir Harbour has experienced renewed business growth since the 2008 launch of a freight line for seafood exports. Located at the mouth the Skálafjord, the harbor has a total of just over 500 meters of quay: the 320 m. Fishing Terminal, the 85 m. Ice Berth, and the 96 m. Cargo Terminal. In addition there is a marina for smaller boats and coastal fishing vessels.

Completed in 2008, the Cargo Terminal is used by the Fresh Link freight line which serves Faroese seafood exporters with two departures every week to Scotland.

A frequent port of call for longliners and inshore fishing boats, Toftir Harbour is home to the Faroe Islands’ only fish market.

Many fishing boats are operated from Toftir and there is also an authorized fish landing station, the fishing industry’s shared Container Centre, and three seafood processing facilities.

Two of these facilities were idle for a few months before reopening recently. The larger one was part of the Faroe Seafood group which went bankrupt in late 2010. However, the facility has now been selected as one of the key production sites of Faroe Link, the new company that took over the bulk of Faroe Seafood’s assets.

“The former Faroe Seafood saltfish processing facility was an important local employer so we’re relieved to see it back in business,” Mr. Johannesen said. “I also imagine that the salt vendor who just moved from Tórshavn to set up his premises here is happy with this turn of events. The fact that the Snodd fish processing facility has resumed operations is a good sign, too.”

Well known for its successful and simple method of helping sea vessels handle litter, Toftir Harbour takes part in a scheme known as ‘Fishing for Litter’ in conjunction with KIMO, the Local Authorities International Environmental Organisation.

“We’re proud of being part of the KIMO effort,” Mr. Johannesen said. “It underscores our commitment to a brighter and cleaner future.”